Raising funds across the Boards

THE FUND RAISER: Plenty of action this week on the junior exploration fund raising scene.

Cornerstone investor kicks in $750,000

Ascot Resources’ (ASX: AZQ) existing cornerstone investor, Resource Capital Fund V L.P. has agreed to provide $750,000 in equity funding to support the company’s 2014 project development initiatives and for general corporate and working capital requirements.

RCF V will make the investment by subscribing for just over 9.8 million fully paid ordinary shares at a price of 7.65 cents per share.

The company will issue RCF V a further approximately 1.05 million fully paid ordinary shares in payment of a $75,000 establishment fee.

$700,000 Capital Raising

Nagambie Mining (ASX: NAG) has received firm commitments from sophisticated and professional investors for the placement of $700,000 of new shares at an issue price of 3.3 cents per share.

The funds raised from the placement will be applied towards exploration drilling at the Wandean gold prospect and general working capital requirements.

$1.5M raised in oversubscribed Placement

Argonaut Resources (ASX: ARE) has completed a placement to sophisticated and professional investors to raise $1.5 million in new capital.

In addition to the Placement, the company will undertake a 1 for 5 rights issue on the same terms as the Placement (2.2 cents per share) to raise up to a further $1.5 million.

The proceeds of the Placement and Rights Issue will be used as working capital and to advance
Argonaut’s interests in the Lumwana West project in Zambia and the Torrens project in South Australia.

$1.2M instalment payment for sale of Mt Jewell gold project

Pioneer Resources (ASX: PIO) has received the latest instalment payment, of $1.2 million, from the sale of the Mt Jewell Gold project to KalNorth Gold Mines Limited (ASX: KGM).

The $1.2 million is the third instalment payment and means the Company presently holds cash reserves of approximately $2.3 million.

A final instalment, of $1.1 million, is due on 6 March 2015.

Following the receipt of this instalment payment the Company has initiated its field exploration programs for 2014 at the Fairwater (Fraser Range) nickel and gold project and the Acra gold project.

At Acra the company has drilling of 15 RC holes planned for the Kalpini South prospect, which will commence when environmental approvals are received later in March. Results are expected in April 2014.

Placement for $12.6M to advance Hillside development

Rex Minerals (ASX: RXM) has received commitments to raise approximately $12.6 million by way of a two-tranche placement of approximately 31.6 million ordinary fully paid shares at 40 cents per share to institutional and sophisticated investors in Australia and overseas.

The issue price represents an approximate 13 per cent discount to the last closing price of Rex shares prior to the raising.

“This fundraising will allow us to expedite our business plans including completion of the BFS, fees payable for early contractor involvement work currently being undertaken by Hyundai and AMEC in relation to the EPC contract and some of the early design and pre-engineering works for infrastructure at Hillside such as the water pipeline and electricity upgrade before we commit to the major funding and development of the project,” Rex Minerals managing director Mark Parry said.

“In my visits in the past fortnight to the UK, USA and Asia it is clear that investors recognise the value in Hillside’s key attributes including its comparatively low capital intensity and cash generating potential underpinned by a JORC compliant 12 year reserve base.”

Flinders raising $14.3M for PIOP BFS

Flinders Mines (ASX: FMS) has announced a $14.3 million capital raising comprising:

A placement of approximately 274 million fully paid ordinary shares at 2.5 cents per share to raise approximately $6.8 million; and

A fully underwritten 1 for 7 non-renounceable entitlements issue at 2.5 cents per share to raise approximately $7.5 million.

The company will use the funds raised under the Placement and Entitlements Issue to:

Conduct further drilling on the Pilbara iron ore project (PIOP) with a view to upgrading existing Inferred Resources to Indicated status;

Commence Bankable Feasibility Study and detailed design studies; and

Provide working capital to the company.

Rights Issue

Yellow Rock Resources (ASX: YRR) has announced a rights issue to existing shareholders to raise approximately $3.49 million

Shareholders will have the opportunity to subscribe for one new share for every share held at the record date at an issue price of one cent per new share.

Subscribers to the rights issue will also receive one free attaching option exercisable at 1.5 cents for every one new subscribed for and issued.

Funds raised under the rights issue will be utilized for the upcoming exploration program at Gabanintha, future exploration programs of the company’s projects, working capital and costs of the issue.

Placement and Share Purchase Plan

Pacifico Minerals (ASX: PMY) is raising up to $3.62 million by way of a placement of fully paid ordinary shares to sophisticated and institutional clients of Argonaut Securities.

The company is also proposing a Share Purchase Plan to existing shareholders to raise a further $1.2 million.

The Placement and SPP, if fully subscribed, will raise a total of $4.82 million before costs.

The proceeds of the Placement and the SPP will enable the company to explore high-priority prospects at the recently acquired Berrio gold project, and provide it with the ability to increase its interest in the project to a majority stake, as well as to provide for working capital to further pursue its Colombian exploration strategy.